Terri Butler (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. According to the ABS, childcare costs in Brisbane in my electorate have increased 14 per cent since this Liberal government was elected. Will the Prime Minister rule out making it harder for families to make ends meet by adding a GST to the cost of child care?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

As the honourable member knows, our proposed Jobs for Families package increases childcare investment by an additional $3½ billion. It increases overall expenditure to $40 billion over the next four years. It will deliver simpler, more affordable, more flexible and accessible system for around 1.2 million families from around 1 July 2017, many of whom will be on average $30 a week better off. The changes to the activity test better align—as she knows—subsidised care to the hours worked—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume his seat. Before I call the member for Griffith, I caution against frivolous points of order.

Terri Butler (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

My question goes to whether the GST would be added to the cost of child care.

Tony Smith (Speaker) Share this | Link to this | Hansard source

There is no point of order. The Prime Minister is entitled to give context to the question. The member for Hotham will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The families who do not meet the activity test but who earn around $65,000 a year or less will still receive 12 hours of—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Griffith, you have already raised a point of order on relevance. There can only be one point of order.

Terri Butler (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

I now raise the question of whether the Prime Minister is flouting your ruling, Mr Speaker.

Tony Smith (Speaker) Share this | Link to this | Hansard source

No, he is not. I said there was no point of order and so he cannot be flouting my ruling. He is entitled to give context.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Families who do not meet the activity test but earn around $65,000 a year or less—you would think the honourable member who represents many of those families would have some interest in this—will still receive 12 hours a week of subsidised care for their children. The new childcare subsidy is consistent with the Productivity Commission's recommendation to have a simple, single means tested subsidy that provides greater assistance to low-income families, including those with multiple children. Under the six years of Labor fees increased by 53 per cent by contrast, costing parents $73 a week.

Turning now to the GST, I can see that right across Australia we have a broad discussion about how we are going to ensure that our tax system is relevant to 2015 and how it will support Australians and back them in as they work, save and invest—right across the board. Of course, everyone is participating in it—former Labor premiers, but not the honourable members opposite. All they want to do is run these scare campaigns. They want to play the rule-in, rule-out game. They want to frighten people. Let me tell you something—and I have given the honourable member a pretty clear answer on this. If you were to increase the GST without any compensation and without any other arrangements, households on lower incomes would be disadvantaged, and that is why it would never be done. That is why it was not done in the past—

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Griffith!

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

and that is why it is inconceivable. The fact of the matter is that any changes to the tax system will be fair. They will be fair—that is a fundamental design requirement. The honourable member should be wise enough to recognise that that is the way—(Time expired)

Tony Smith (Speaker) Share this | Link to this | Hansard source

Just before I call the member for Denison, the member for Jagajaga will cease interjecting. I asked the member for Griffith to cease interjecting; she continues to interject; she is now warned.